For companies that sell more than one product, it is helpful to calculate how much each individual product contributes to the overall company's sales and profits. To do that, we calculate the margin ...

The sales margin is a vital metric used to reveal how profitable each item sold is to your business. You can calculate the sales margin for an individual sale, a group of sales or all transactions ...

To run a company successfully, you need to know everything about your business, including its financials. One of the most critical financial metrics to grasp is the contribution margin, which can help ...

The variable contribution margin, also known as the contribution margin or gross profit, describes the amount of profit generated by the sale of an item for a company. The variable contribution margin ...

Gross profit is one of the most important measures of profitability in corporate finance. Gross profit is total revenue minus the cost of goods sold (COGS). Because this metric only takes into account ...

Net profit margin is a key financial metric that measures the percentage of revenue left as profit after all expenses are deducted. Investors and businesses can use the net profit margin to assess a ...

When you run a company, it’s obviously important to understand how profitable the business is. Many leaders look at profit margin, which measures the total amount by which revenue from sales exceeds ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

For companies that sell more than one product, it is helpful to calculate how much each individual product contributes to the overall company's sales and profits. To do that, we calculate the margin ...

Net profit margin shows a company's remaining revenue after expenses as a percentage. To calculate net profit margin, divide net income by revenue and multiply by 100. Comparing net profit margins ...